Fast and loose comparisons with petrofac16 Nov 2024 08:48
I have noticed JXP provide his perspective that WG is just like Petrofac.
WG is not and by looking at the main reasons it is not this nonsense can be quashed straight away.
- net debt is low and being paid.
- no bonds needing renegotiation
- growing order book
- ebitda impressive
-2004fy results expected to show FCF for first time - means dividend.
2004 FY results in Jan 25 should show incredible progress 2 yrs into restructuring business.
So - if JXP and his kind can demonstrate why WG is just like Petrofac with fast and loose talk then I invite them to provide the analysis.
People also need to look at the FY 2023 results below:
FY23 trading update
12 January 2024
Full year trading in line with expectations
John Wood Group PLC ('Wood' or 'the Group') announces a trading update for the year ended31 December 2023 ('FY23').
Ken Gilmartin, CEO, said:
"We are now one year into our strategic growth journey and our results continue to show clear progress. We have delivered strong revenue and EBITDA growth, improved our underlying cash generation, grown our order book, and continue to see an acceleration in the proportion of sustainable solutions within our pipeline.
"We are confident that our actions, business model and strategy are delivering and look forward to giving a further update in March."
Highlights
· Trading in line with expectations
o FY23 revenue around $6 billion, up 9% with good growth across all business units
o FY23 adjusted EBITDA slightly ahead of guidance at $420 million to $425 million, up 9%
o Adjusted EBITDA margin slightly above 7% including opex investments in the year
· Further momentum in strategic delivery
o Significant contract wins across energy and materials
o Order book of around $6.1 billion was up 4% on a comparable basis1 and supports our growth expectations for 2024
o Over 40% of bidding pipeline now from sustainable solutions2
o Started the sales process for our stake in the EthosEnergy joint venture3
· Continued improvement in underlying cash flows
o Operating cash flow of c.$210 million, a significant improvement on FY22 ($66 million outflow), with around $175 million operating cash flow generated in the second half
o Net debt excluding leases at 31 December 2023 was c.$680 million, including exceptional cash outflows in line with our guidance of c.$140 million and an FX impact of c.$15 million
o Net debt was slightly above our expectations due to FX and the timing of customer receipts in December, as flagged in our Q3 trading update
o On track to deliver positive free cash flow in 2024, as previously guided
FY23 trading across businesses
Consulting saw strong revenue growth of c.13% to c.$0.7 billion with continued growth in our solutions across energy security, energy transition and digital consulting.
Adjusted EBITDA was c.4% higher at c.$80 million, with revenue growth par
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